Semiconductor producer Loongson Technology filed an initial public offering (IPO) in Shanghai as it moves towards its goal of making home-grown chips, reported the South China Morning Post.
The Beijing-based company aims to raise RMB 3.5 billion ($542 million) across 41 million shares on Shanghai’s Science and Technology Board, also known as the Star Market. The funds raised will fuel the company’s development of chip manufacturing, research into graphic processing units, and liquid capital.
The development of home-grown chips is a major industrial goal for China. In 2017, the country imported $260 billion worth of semiconductors. According to China’s official data, domestic chip suppliers only meet 5% of the country’s yearly demand.